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Local public transport on the basis of social economic criteria

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  • Ljungberg, Anders
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    Abstract

    Applying the welfare economic approach it is demonstrated what the effects of certain supply changes in the local public transport will be and the potential of innovative demand management measures are examined. Straighter bus routes would reduce the average travel time from door to door. The travel time on the buses decreases and the frequency increases, which reduces waiting times at bus stops. Using smaller buses and more of them would also increase the net benefit, but increase the need for subsidisation. The peak within the peak in the morning is hard to handle by price policy alone. Introducing a small variation of the start of the school-day for high-school pupils would make investment- and operation cost savings possible, and the inconvenience costs for the pupils could be limited. It is only during peak hours in the main direction of peak travel and in the critical section of the line that optimal price becomes high relative to the present level. Zero fares in off-peak will be social profitable, but an increase in subsidy is needed. An introduction of these policy changes would give rise to a net social benefit of 30 million SEK per year in Linköping.

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    Bibliographic Info

    Article provided by Elsevier in its journal Research in Transportation Economics.

    Volume (Year): 29 (2010)
    Issue (Month): 1 ()
    Pages: 339-345

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    Handle: RePEc:eee:retrec:v:29:y:2010:i:1:p:339-345

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    Keywords: Local public transport CBA Straighter bus routes Staggered hours Peak-load pricing;

    References

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    1. Charles L. Ballard & Don Fullerton, 1993. "Distortionary Taxes and the Provision of Public Goods," NBER Working Papers 3506, National Bureau of Economic Research, Inc.
    2. Wardman, Mark, 2004. "Public transport values of time," Transport Policy, Elsevier, vol. 11(4), pages 363-377, October.
    3. Anthony J. Venables, 2004. "Evaluating Urban Transport Improvements: Cost Benefit Analysis in the Presence of Agglomeration and Income Taxation," CEP Discussion Papers dp0651, Centre for Economic Performance, LSE.
    4. Holmgren, Johan & Jansson, Jan Owen & Ljungberg, Anders, 2008. "Public transport in towns - Inevitably on the decline?," Research in Transportation Economics, Elsevier, vol. 23(1), pages 65-74, January.
    5. Ian W.H. Parry & Kenneth A. Small, 2007. "Should Urban Transit Subsidies Be Reduced?," Working Papers 060723, University of California-Irvine, Department of Economics.
    6. Sergio Jara-Díaz & Antonio Gschwender, 2003. "Towards a general microeconomic model for the operation of public transport," Transport Reviews, Taylor & Francis Journals, vol. 23(4), pages 453-469, July.
    7. Mohring, Herbert, 1972. "Optimization and Scale Economies in Urban Bus Transportation," American Economic Review, American Economic Association, vol. 62(4), pages 591-604, September.
    8. van Goeverden, Cees & Rietveld, Piet & Koelemeijer, Jorine & Peeters, Paul, 2006. "Subsidies in public transport," European Transport \ Trasporti Europei, ISTIEE, Institute for the Study of Transport within the European Economic Integration, issue 32, pages 5-25.
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    Cited by:
    1. Holmgren, Johan, 2013. "The efficiency of public transport operations – An evaluation using stochastic frontier analysis," Research in Transportation Economics, Elsevier, vol. 39(1), pages 50-57.

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